TAG Immobilien Stock: Convertible Bond Sends Shares Tumbling

TAG Immobilien's announcement of a convertible bond offering sent its stock price downward on Tuesday, with shares dropping 3.3 percent in MDAX trading. The decline was even more pronounced on the Tradegate platform, where losses reached approximately 5 percent compared to the Xetra close. The stock fell below its 21-day and 50-day moving averages, reaching its lowest level in a week. This performance contrasted with competitor Vonovia, which managed a slight gain of 0.4 percent. TAG plans to issue convertible bonds totaling around 325 million euros, maturing in March 2031, representing approximately 10 percent of the company's share capital. The management indicated that proceeds would be used for general corporate purposes, with existing shareholders excluded from subscription rights.

Bond Offering Details

The convertible bonds will be issued in denominations of 100,000 euros each at 100 percent of their nominal value. They feature a 0.625 percent annual coupon, paid semi-annually in arrears. The initial conversion premium will be set between 35 and 40 percent above the volume-weighted average price of TAG shares in XETRA trading. The offering will be conducted through a private placement exclusively to institutional investors via an accelerated bookbuilding process. Following the announcement, TAG has committed to a 90-day lock-up period starting from the issue date.